Quiz Ch 10 – T/F Estimating Cost of Common Stock from Retained Earnings

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: The passage outlines three approaches to estimate the cost of common stock from retained earnings: the CAPM method, the DCF method, and the bond-yield-plus-risk-premium method. Yet, in practice, only the DCF method finds widespread usage.

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